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Prices fall 5.4% in the year to June

Food - Prices dropped in June
Food - Prices dropped in June

The latest figures from the Central Statistics Office show that the pace of falls in consumer prices quickened in June.

Prices fell at an annual rate of 5.4%, compared with a 4.7% annual drop in May.

Read the CSO report

In recent months, prices have been falling at rates not seen since the early 1930s. Compared with May, prices dropped by 0.3%.

Summer sales meant clothing and footwear prices dropped by 2.6% in the month.

Mortgage repayments fell again as more ECB interest rate cuts were passed on to homeowners.

Food prices were also lower, but transport costs rose 1.5% as petrol and diesel prices increased.

A breakdown showed that prices of goods dropped by 5% in the year to June, while services showed a fall of 5.6%.

Clothing and footwear prices have fallen by more than 12% over the year, while housing, water, electricity, gas and other fuels - the category which includes mortgage repayments - are down 25.6%.